I'm trustee for grantor trust set up for Medicaid purposes. I pay parents monthly rent using the trust but was told by lawyer this was wrong. What taxes in 21

[treinhardt67-]

I have stop paying their rent with funds from the trust but have no idea what if any taxes they will have to pay in 2021 because I used funds from their grantor trust to pay their rent.  My dad has dementia so he did not tell me not to use the trust money to pay their rent?  I am sick over this so any help would be greatly appreciated

[Anonymous_ · Accepted solution]

You need to consult with your attorney and also with a local tax professional.

See https://taxexperts.naea.org/listing/service/estates-gifts-trusts

[treinhardt67-]

Thank you.